Brookings: The Euro Crisis Faces Three Possible Scenarios

English: Various Euro bills.

Various Euro bills. (Photo credit: Wikipedia)

By Douglas J. Elliott, Brookings, August 9, 2012

Anyone who tells you that they know how the euro crisis is going to be resolved is either lying to you or to themselves. The situation is so complex that several quite different paths are possible. In this type of situation, smart analysts use scenario analysis and strive to put probabilities on the different outcomes, without making the mistake of thinking they can predict the future with accuracy. Events can change perceptions of the probabilities quickly and significantly, which is why we observed so much market volatility surrounding recent statements by the head of the European Central Bank… (more)


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Filed under Brookings Institute, European Union, Financial Crisis, Think Tank

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